21-1005_LENNAR HOMES OF CALIFORNIA, INC_Grading Surety AgreementE) ORIGINAL
GRADING SURETY AGREEMENT
THIS AGREEMENT is made by and between the CITY OF SAN JUAN CAPISTRANO; a
municipal corporation, hereinafter referred to as the "City," and LENNAR HOMES OF
CALIFORNIA, INC, hereinafter referred to as "Developer."
WITNESSETH
WHEREAS, City will issue Precise Grading Permit No B21-0381 to Developer to
construct certain designated improvements upon a portion of that real property located at
26225 Farm Road, San Juan Capistrano, CA, such work being commonly referred to as
THE FARM ("Project').
WHEREAS, San Juan Capistrano Municipal Code Section 8-2.08 requires the
posting of financial security to secure the faithful performance for the grading and
installation of related improvements connected with issuance of grading permits including
the construction of drainage and protection devices and any other corrective work to
remove and eliminate engineering and geological hazards.
WHEREAS, San Juan Capistrano Municipal Code Section 8-2.09 authorizes the
Building Official to require additional bonding as security to ensure against adverse
aesthetic impacts arising from incomplete grading and/or improvements from development
projects which have not been completed.
WHEREAS, the Building Official finds that the proposed Project site is highly
prominent and visible to the community, has unique topographic features or involves
substantial grading of slope areas.
NOW, THEREFORE, in consideration of the premises and promises hereinafter
contained, City and Developer agree as follows:
1. Developer's Improvements Obligations. Developer shall, at its sole cost and
expense, provide and furnish all labor, materials and equipment for the Project depicted on
the plans entitled "Precise Grading Plan for the Farm Tract 19063 (REC CENTER)" as
approved by the City Engineer, on September 27, 2021. The grading permit and plans,
which describe all the work to be constructed pursuant to this Agreement, are on file in the
office of the City's Building Official.
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61147.02100\24835741.2
2. Developer's Security. Developer shall provide a cash deposit, irrevocable
letter of credit, certificate of deposit or a bond by a duly authorized corporate surety subject
to the approval of the City Attorney, or as approved by the City Engineer, to secure
Developer's improvement obligations required under this Agreement ("Security").
The amount of the Security shall be $123,878 for all onsite grading improvements as
approved by the City Engineer. This Security shall also serve as security for restoration of
the Project site. A copy of the performance bond form, as approved by the City Attorney, is
attached hereto as Exhibit "C" and incorporated herein by this reference. Copies of
approved irrevocable letter of credit forms and certificate of deposit form are available upon
request.
3. Completion of Improvements. To ensure the protection of the public safety,
health and welfare, Developer shall construct the Project in accordance with the schedule
asset forth in Exhibit "A°, and the conditions asset forth in Exhibit "B'. Exhibits "A" and "B"
are attached hereto and incorporated herein by this reference.
4. Developer Default. In the event Developer does not complete the required
improvements, including erosion and silt control measures within the time required, using
Best Management Practices (BMP) in implementing a Water Quality Management Plan in
full compliance with Orange County National Pollutant Discharge Elimination System
(NPDES) Storm Water Implementation Agreement and San Juan Capistrano Municipal
Code Section 8-14, or abandons the Project site, or suspends work for more than twenty
(20) working days without written approval of the City, City shall have the right to
immediately declare a default and to make demand on Developer's surety for performance
of all obligations under this Agreement.
5_ Restoration of Site. San Juan Capistrano Municipal Code Section 8-2.09
allows the City to require bonding as security to ensure against adverse aesthetic impacts
arising from incomplete grading, drainage and/or improvements which includes illicit non -
storm drain water discharge. The purpose of this security shall be to restore the property to
a safe and acceptable condition in the event the Developer defaults. This restoration shall
include but not be limited to the following:
A. Dismantle and/or demolish improvements;
B. Grade property to its original contours as shown on the approved
grading plans.
C. Remove all debris and construction materials from the site; and
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61147.02100\24835741.2
D. Install erosion and silt control devices, including hydroseeding, to
insure a uniform vegetative cover, or equivalent stabilization
measures which include the use of such Best Management Practices
as blankets, fiber matrices, catch basin filters, or other erosion
resistant soil coverings or treatments to satisfaction of the Director of
Engineering and Building.
E. Protection and repair of existing public street, water, sewer and storm
drain system(s).
6. Attorney's Fees. Developer agrees to pay City such sum as the court may
judge as reasonable for the legal services of an attorney representing the City in an action
brought to enforce or interpret the obligations of this agreement, and such sum shall be
made a part of any judgment in such action against Developer if such action is determined
in favor of the City.
7. Developer's Work in Safe Condition. Developer shall perform all work in a
safe workmanlike manner and shall take such precautions as may be necessary to warn
and protect the public from any dangerous condition caused by the Project.
8. Liability City, its officials, officers, employees, agents, and volunteers shall
not be liable for any injury to persons or property occasioned by reason of the acts or
omissions of Developer, its agents or employees in the performance of this Agreement.
Developer further agrees to protect, indemnify, and hold harmless City, its officials, officers,
employees, agents, and volunteers from any and all claims, demands, causes of action,
liability or loss of any sort, because of, or arising out of, the alleged acts or omissions of
Developer, its agents or employees in the performance of this Agreement, including all
claims, demands, causes of action, liability, or loss because of, or arising out of, in whole or
in part, the design or construction of the Project. This indemnification and agreement to
hold harmless shall extend to injuries to persons and damages or faking of property
resulting from the design or construction of said Project, and in addition, to adjacent
property owners as a consequence of the diversion of waters from the design or
construction of drainage systems, streets and other improvements.
SIGNATURES ON FOLLOWING PAGE
Grading Surety Agreement, Permit #B21-0381 Page 3 of 10
61147.021001248357412
SIGNATURE PAGE TO GRADING SURETY AGREEMENT
THE CITY OF SAN JUAN CAPISTRANO AND
LENNAR HOMES OF CALIFORNIA, INC
IN WITNESS WHEREOF, the parties have executed this Agreement as of
Ii.
CITY OF SAN U N CAPISTRANO
By:G1i,
Ronald Shanks, Building Official
Dated: ) 2
Approved as to Form:
Bv-
City Attomey
2021
LENNA E OF CALIFORNIA, INC
By:
Printed Name IJ►�T� t t�L,
Title AL,+Morire-,l �te-+
In
Printed Name
Title
Grading Surety Agreement, Permit #821-0381 Page 4 of 10
61 147 02 1 00/2483574 1 2
Task
EXHIBIT "A"
SCHEDULE FOR COMPLETION OF IMPROVEMENTS
1. Complete rough grading
2. Start installation of onsite Storm drain work
3. Start & Finish Soil Stabilization work
4. Curb & Gutter work
5. Walks, Railings & Fences
6. A/C Paving
Grading Surety Agreement, Permit #B21-0381 Page 5 of 10
61147.021001248357412
Completion Date
October 29, 2021
May 19, 2021
September 15, 2021
November 30, 2021
August 15, 2024
December 31, 2021
EXHIBIT flail
CONDITIONS FOR COMPLETION OF IMPROVEMENTS
The grading for this project shall be in strict conformance with the grading plans as
well as the San Juan Capistrano Municipal Code.
2. Grading operations shall commence within sixty (60) calendar days after issuance of
Grading Permit
Winter grading will be conducted in strict accordance with the dynamic erosion and
silt control plan submitted by the Developer, and approved by the City. This erosion
and silt control plan reflects erosion and silt mitigation measures for expected
grading conditions as the work progresses through the winter season and shall not
be amended except with the permission of the City.
In the event Developer does not wish to implement winter grading, or permission for
winter grading is rescinded, static erosion and silt control plans reflecting current
conditions of grading shall be submitted within ten (10) days of cessation of work.
These plans shall:
1. Identify all pollutant sources including sources of sediment that may affect
the quality of storm water discharges associated with the construction
activity.
2. Include the erosion and sediment control planting and hydroseeding to
insure a uniform vegetative cover or equivalent stabilization measures which
include the use of such Best Management Practices as blankets, fiber
matrices, catch basin filters or other erosion resistant soil covering or
treatments to the satisfaction of the City Engineer.
3. Suspension in excess of twenty (20) working days of work authorized by approved
grading plans and grading permit for subject property, including erosion and
sediment control measures and landscaping and irrigation, shall constitute default of
this agreement unless Developer has received approval from the City authorizing a
suspension in excess of twenty (20) days.
4. The supervising civil engineer and soils engineer shall file biweekly progress reports
of all grading operations with the Building Official. An interim compaction report, for
that work completed at the time work is suspended for the rainy season, shall be
Grading Surety Agreement, Permit #B21-0381 Page 6 of 10
61147.021001248357412
filed with the Building Official. This interim report shall conform to the grading code
requirements for final compaction reports.
5. Contractor shall control dust to the satisfaction of the Building Official or his deputy.
During grading, Contractor shall keep water truck on site and dampen work area,
grounds, and loaded trucks.
6. Grading operations suspended during the rainy season shall be resumed no later
than 15 days from date of suspension termination unless the Developer has
received approval from the City authorizing a suspension in excess of fifteen (15)
days.
7. Installation of interim erosion and sediment control devices and systems shall
commence within seven (7) days after rough grade certification has been approved
by the Building Official and must be completed within fifteen (15) days of rough
grade certification. Final erosion and sediment controls devices, planting,
landscaping and irrigation systems shall be installed prior to final inspection of the
grading permit
8. All work shall be performed in strict observation of the Hours of Operation in
accordance with San Juan Capistrano Municipal Code Section 8-1.03.
9. Contractor shall adhere to conditions of haul route permit and encroachment permit
issued by the City Engineer.
10. Parking for construction crew is to be on-site.
11. Exoneration of Security: Developer's security shall be reduced to 90% upon signoff
of precise grading permit. The remaining 10% of the security given by Developer
shall not be released until the expiration of the warranty period and until any claims
filed during the warranty period have been settled. Nothing herein shall limit the
City's rights or the Developer or surety's obligations under this Agreement.
12. Warranty Period: 1 year from permit signoff by City.
Grading Surety Agreement, Permit #B21-0381 Page 7 of 10
61147.021001248357412
BOND NO. 800117915
INITIAL PREMIUM: $310.001 annum
SUBJECT TO RENEWAL
The Farm (Rec Center) B21-0381
GRADING SURETY AGREEMENT
PERFORMANCE BOND
KNOW ALL MEN BY THESE PRESENTS:
W14EREAS the City of San Juan Capistrano ("City") and Lennar Homes of California, Inc.
("Principal"), have executed an agreement for work consisting of, but not limited to, the furnishing
of all labor, materials, tools, equipment, services, and incidentals for all grading and installation of
related improvements for Tract Map Nos. 19063 ("the Work");
WHEREAS, the Work to be performed by Principal is more particularly set forth in
that certain Grading Surety Agreement dated 20 21 ("Agreement"), which
Agreement is incorporated herein by this reference; and
WHEREAS, Principal is required by the Agreement to provide a good and sufficient
bond for performance of the Agreement, and to guarantee and warranty the Work performed
thereunder.
NOW, THEREFORE, Principal and Atlantic Specialty Insurance Company as surety
("Surety"), a corporation organized and existing under the laws ofthe State of New York , and
duly authorized to transact business under the laws of the State of California, are held and firmly
One hundmd twenty-three thousand 23,878 00
bound unto City in the sum of eight hondma seventy�isht dollars ($1 ED, for which amount well
and truly to be made, we bind ourselves, our heirs, executors, administrators, successors or assigns,
jointly and severally, firmly by these presents.
THE CONDITION OF THIS OBLIGATION is such, that if Principal, his or its heirs,
executors, administrators, successors or assigns, shall in all things stand to and abide by, and well
and truly keep and perform the covenants, conditions, agreements, guarantees, warranties and
provisions in the Agreement and any alteration thereof made as therein provided, on his or their part,
to be kept and performed at the time and in the manner therein specified, and in all respects
according to their intent and meaning, and shall indemnify and save harmless City, its officers,
employees, and agents, as therein stipulated in the Agreement, then this obligation shall become null
and void; otherwise it shall be and remain in full force and effect.
As part of the obligation secured hereby, and in addition to the face amount specified
therefor, there shall be included costs and reasonable expenses and fees, including reasonable
attorney's fees, incurred by City in successfully enforcing such obligation, all to be taxed as costs and
included in any judgment rendered.
Surety, for value received, hereby stipulates and agrees that no change, extension of
time, alteration, or addition to the terms of the Agreement, or to any plans, profiles, and
specifications related thereto, or to the Work to be performed thereunder, shall in any way affect its
Grading Surety Agreement, Permit #B21-0517 Page 8 of 10
61147.02100k24835741.2
obligations on this bond, and it does hereby waive notice of any such change, extension of time,
alteration, or addition to the terms of the Agreement, or to the Work or to the specifications.
IN WITNESS WHEREOF, the seal, if any, and signature of the Principal is hereto
affixed, and the corporate seal and the name of the Surety is hereto affixed and attested by its duly
authorized Attorney -in -Fact at Irvine, California this 15th day of September
2021 .
Lennar Homes of California, Inc., a California corporation
Principal` 1
By: V -
`�I t &C President
`r-,rk j k- CZcJ'rl
(print name)
Atlantic Specialty Insurance Company
Surety "tj
By:
Attorney -in -Fact
Mechelle Larkin
(print name)
NOTE: APPROPRIATE NOTARIAL ACKNOWLEDGMENTS OF EXECUTION BY
PRINCIPAL AND SURETY, AND A COPY OF THE POWER OF
ATTORNEY TO LOCAL REPRESENTATIVES OF THE SURETY MUST BE
1 OFIX014 0111[3:T11"
Grading Surety Agreement, Permit #B21-0517 Page 9 of 10
61147.02 100\24835741 2
CALIFORNIA ALL-PURPOSE ACKNOWLEDGEMENT
A Notary Public or other officer completing this certificate verifies only the identity of the individual who
signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of
that document.
STATE OF CALIFORNIA )
COUNTY OF ORANGE
On September 20, 2021 before me, Peggy R. Yazloff, Notary Public,
personally appeared Brian K. Bencz who proved to me on the basis of
satisfactory evidence to be the person whose name is subscribed to the
within instrument and acknowledged to me that he executed the same in his
authorized capacity, and that by his signature on the instrument the person,
or the entity upon behalf of which the person acted, executed the
instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California
that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature Z14ZVv514&
PEGGY R. YAILOFF
COMM. #2323881 z
,m Notary Public - California z
z range County o
M Comm. Ex ires Mar. 12, 2024
(Seal)
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the
document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
State of California )
County of Orange )
On SEP 15 1021 before me, Kathy R. Mair, Notary Public
DATE IName of Notary Public and Title 'Notary Public'I
personally appeared Mechelle Larkin ---------------------------------------,
[Name(s) of Signeds)I
who proved to me on the basis of satisfactory evidence to be the person(&) whose name(&) is/are
subscribed to the within instrument and acknowledged to me that he/she/they executed the same
in #is/her/their authorized capacity(ies), and that by his/her/their signature(&) on the instrument
the person(, or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the
foregoing paragraph is true and correct.
a,ATW R. "llt
1 Notary Public • Calffarila
A
oranite County
Communion 0 2755505
my Comm. Expires Nay 22.2025
WITNESS my hand and official seal.
Sign a of tary Public
Place Notary Seal Above
---------------------------------------------- OPTIONAL
Though this section is optional, completing this information can deter alteration of the document or
fraudulent reattachment of this form to an unintended document.
Description of Attached Document
Title or Type of Document:
Document Date:
Number of Pages:
Signer(s) Other Than Named Above:
Capacity(ies) Claimed by Signer(s)
Signer's Name: Mechelle Larkin
Signer's
Name:
❑ Corporate Officer — Title(s):
❑
Corporate Officer — Title(s):
❑ Partner— ❑ Limited ❑ General
❑
Partner— ❑ Limited ❑ General
❑ Individual ® Attorney -in -Fact
❑
Individual ❑ Attorney -in -Fact
❑ Trustee ❑ Guardian or Conservator
❑
Trustee ❑ Guardian or Conservator
❑ Other:
❑
Other:
Signer Is Representing:
Signer is Representing:
One Beacon
INSURANCE GROUP
Power of Attorney
KNOW ALL MEN BY THESE PRESENTS, that ATLANTIC SPECIALTY INSURANCE COMPANY, a New York corporation with its principal office in Plymouth,
Minnesota, does hereby constitute and appoint: Kari Davis, Tenzer V. Cunningham, Brenda Wang, Martha Gonzales, Joaquin Perez, My Hua, Mechelle Larkin,
Kathy R. Mair, each individually if there be more than one named, its true and lawful Attomey-in-Fact, to make, execute, seal and deliver, for and on its behalf as smety, any
and all bonds, recognizances, contracts of indemnity, and all other writings obligatory in the nature thereof; provided that no bond or undertaking executed under this authority
shall exceed in amount the sum of: sixty million dollars ($60,000,000) and the execution of such bonds, recognizances, contracts of indemnity, and all other writings
obligatory in the nature thereof in pursuance of these presents, shall he as binding upon said Company as if they had been fully signed by an authorized officer of the Company
and sealed with the Company seal. This Power of Attorney is made and executed by authority of the following resolutions adopted by the Board of Directors of ATLANTIC
SPECIALTY INSURANCE COMPANY on the twenty-fifth day of September, 2012:
Resolved: That the President, any Senior Vice President or Vice -President (each an "Authorized Officer") may execute for and in behalf of the Company any and
all bonds, recognizances, contracts of indemnity, and as other writings obligatory in the nature thereof, and affix the seal of the Company thereto; and that the
Authorized Officer may appoint and authorize an Attomey-in-Fact to execute on behalf of the Company any and all such instruments and to affix the Company
seal thereto; and that the Authorized Officer may at any time remove any such Attomey-in-Fact and revoke all power and authority given to any such Attomey-in-
Fact.
Resolved: That the Attomey-in-Fact may be given full power and authority to execute for and in the name and on behalf of the Company any and all bonds,
recognizances, contracts of indemnity, and all other writings obligatory in the oatrre thereof, and any such instrument executed by any such Attorney -in -Fact shall
be as binding upon the Company as if signed and sealed by an Authorized Officer and, further, the Attomey-in-Fact is hereby authorized to verify any affidavit
required to be attached to bonds, recognizances, contracts of indemnity, and all other writings obligatory in the nature thereof.
This power of attorney is signed and sealed by facsimile under the authority of the following Resolution adopted by the Board of Directors of ATLANTIC SPECIALTY
INSURANCE COMPANY on the twenty-fifth day of September, 2012:
Resolved: That the signature of an Authorized Officer, the signature of the Secretary or the Assistant Secretary, and the Company seal may be affixed by
facsimile to any power of attomey or to any certificate relating thereto appointing an Attomey-in-Fact for purposes only of executing and sealing any bond,
undertaking, recognizance or other written obligation in the nature thereof, and any such signature and seal where so used being hereby adopted by the Company
as the original signature of such officer and the original seal of the Company, to be valid and binding upon the Company with the same force and effect as though
manually affixed.
IN WITNESS WHEREOF, ATLANTIC SPECIALTY INSURANCE COMPANY has caused these presents to be signed by an Authorized Officer and the seal of the Company
to be affixed this twenty-ninth day of April, 2019.
""SY INg"
?a +00Pns I/
SEAL
`u' 1986 ro By
STATE OF MINNESOTA .yd ryFw roPtaa. Paul J. Brehm, Senior Vice President
HENNEPIN COUNTY •••'z1 b'..ir .. ��"„
On this twenty-ninth day of April, 2019, before me personally came Paul J. Brehm, Senior Vice President of ATLANTIC SPECIALTY INSURANCE COMPANY, to me
personally known to be the individual and officer described in and who executed the preceding instrument, and he acknowledged the execution of the same, and being by me
duly sworn, that he is the said officer of the Company aforesaid, and that the seal affixed to the preceding instrument is the seal of said Company and that the said seal and the
signature as such officer was duly affixed and subscribed to the said instrument by the authority and at the direction of the Company.
MANDALY ANN LAMERE
NOTARY PUBLIC • MINNESOTA
My Commission Expires
[ Gq-yw, January31, 2023
Notary Public
1, the undersigned, Secretary of ATLANTIC SPECIALTY INSURANCE COMPANY, a New York Corporation, do hereby certify that the foregoing power of attorney is in full
force and has not been revoked, and the resolutions set forth above are now in force.
Signed and sealed. Dated 15th day of September 2021.
: 4.0 Ml9i'
h'6SEALF m
1986 .•'o=
Tlds Power of Attorney expiresIs
January
January 31, 2023 "'.lb * *r',..•
W"
Christopher V. Jerry, Secretary